Partial Disability
Partial Disability is a benefit available under some Income Protection and Mortgage Protection policies that provides financial support if you're able to return to work but your illness or injury has reduced your ability to earn your usual income.
Recovering from an illness or injury doesn't always mean you're ready to return to work full-time. In many cases, people return to work gradually, working fewer hours or taking on lighter duties while they continue to recover. This is where a Partial Disability benefit can help.
If you're able to work but your illness or injury has reduced your income, a Partial Disability benefit may provide ongoing payments to help make up for some of that lost earnings. The amount paid depends on your policy and the reduction in your income, and benefits are generally calculated based on your pre-disability earnings.
Partial Disability benefits are designed to support a gradual return to work rather than forcing you to choose between working full-time or not working at all. This can make the transition back to work less financially stressful while you continue your recovery.
Every insurer has different eligibility criteria and methods for calculating benefits, so it's important to understand how your policy works. Your adviser can explain the options available and how Partial Disability benefits fit within your overall Income or Mortgage Protection cover.
Why It Matters
Returning to work after a serious illness or injury is often a gradual process. Partial Disability benefits can help bridge the gap if you're earning less than you did before, allowing you to focus on your recovery without the immediate pressure of returning to full-time work.
Common Misunderstandings
"I have to be completely unable to work to receive benefits."
Not necessarily. If your policy includes a Partial Disability benefit, you may still receive support while working reduced hours or earning less due to your condition.
"I'll receive my full benefit if I return to work."
Usually not. Partial Disability benefits are generally based on the reduction in your income and are calculated according to your policy.
"Every Income Protection policy includes Partial Disability."
Not always. The availability and terms of Partial Disability benefits vary between insurers and policies.
"Once I return to work, my claim automatically ends."
Not necessarily. If you meet your policy's criteria, you may continue receiving Partial Disability benefits while your income remains reduced.
FAQs about Partial Disability
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It's a benefit that may provide financial support if you're able to return to work but your illness or injury has reduced your income.
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The amount paid depends on your policy and the difference between your income before and after your illness or injury.
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Yes. The purpose of the benefit is to support people who have returned to work but are still earning less because of their condition.
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No. Benefits and eligibility criteria vary between insurers, so it's important to understand your specific policy.
Returning to work after an illness or injury doesn't always happen overnight. If you'd like to understand how Partial Disability benefits work or whether your policy includes this feature, talk to a New Vision Financial Services adviser. We'll help you understand your cover and ensure you're prepared for whatever life brings.